Low Carbon Contracts Company (LCCC) has adjusted the Interim Levy Rate (ILR) and has raised an additional Total Reserve Amount (TRA) for Q2 2023. The Quarterly Obligation Period starts on 1 April 2023 and ends on 30 June 2023. The effect of these changes will take place on 27 April 2023. Until then the existing values will be in place: ILR = £0.000/MWh and TRA= £171,348,558.59.
The amounts for the adjustment for Q2 2023 are:
Adjusted ILR = £3.819/MWh
Additional TRA = £150,448,690.48
In making this adjustment, LCCC notes the recent downward trend in the power markets but recognizes the possibility that prices may increase, potentially rapidly. Market prices for this calculation were taken as closing mid-prices on 13 March 2023.
LCCC will be monitoring market prices closely and will make an adjustment to the ILR and/or TRA if market prices move in such a way as to lead LCCC to expect over-collection or that the TRA and ILR may be insufficient to cover the CfD costs. Note that once the quarter has started, the TRA can only be increased, while ILR can be increased or decreased.
• On 20 March 2023, notices will be issued to confirm the ILR adjustment and the additional TRA to active Suppliers in Q2 2023.
• On 20 March 2023, invoices will also be issued to confirm the Suppliers’ share of the additional TRA.
• On 26 April 2023, by 5:00pm Suppliers required to lodge sufficient Credit Cover using the adjusted ILR.
• On 27 April 2023, payment is due for the additional TRA.
For further detail on LCCC’s calculations, please refer to our online CfD Levy Dashboards. Also, further information on the Credit Cover requirements is available in the news section on the EMRS website.